Catenaa, Thursday, February 18, 2026- Grayscale Investments has filed with the US Securities and Exchange Commission to convert its AAVE token trust into an exchange-traded fund that would list on NYSE Arca, according to a filing made public Friday.
The proposed fund would track the price of AAVE, the native token of the Aave decentralized lending protocol. AAVE has a market capitalization of about $1.8 billion and was trading near $119, up roughly 9% on the day, based on market data. The token reached an all-time high of $661.69 in April 2021.
The filing outlines a sponsor fee of 2.5% of net asset value, payable in AAVE. Coinbase would act as custodian and prime broker for the proposed ETF.
Grayscale has converted several closed-end crypto trusts into ETFs in recent years, starting with its spot bitcoin product. Its legal victory over the SEC in 2023 cleared a path for spot bitcoin ETFs to enter the US market.
The AAVE filing comes amid rising competition in crypto-linked investment products. Bitwise Asset Management previously submitted paperwork for multiple crypto ETFs, including funds tied to alternative tokens.
AAVE-based investment products already trade in Europe, including exchange-traded products issued by 21Shares and Global X. If approved, the Grayscale AAVE ETF would expand US investor access to decentralized finance exposure through a regulated exchange vehicle
